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For all your estate planning needs

An independent Wills and Estate Planning service based in the South East which offers a free 60 minute no obligation consultation in the comfort of your own home. 



Trusts can provide the following benefits:-

  • Reduce Probate Fees/Delays 
  • Reduce Inheritance Tax Liability
  •  Support dependant beneficiaries 
  •  No sideways disinheritance
  •  Minimise claims on your Estate
  •  Providing for future generations
  •  Court of Protection Control
  •  Protecting assets from potential relationship failure
  •  Provision for Long Term Care
  •  Protection from Bankruptcy (for the beneficiary.)

There are a number of different Trusts that can be utilised in order to benefit from the above points. Depending on your priority would depend on what Trust is right for you. Essentially there are two main differences. Some Trusts are made by Will and do not come into existence until death, and some Trusts are made independently to the Will and are called "Living Trusts" as they are made whilst you're alive. 

Living Trusts

Living Trusts are specifically designed to protect your assets during your lifetime and to give you peace of mind that they can be passed on securely and intact to your spouse, your children, and their bloodline after your death as you would wish.

Living Trusts, often called 'Asset Trusts' or 'Family Trusts' and can consist of any kind of asset such as property, savings and investments.

Timing is vital when making a Living Trust as if you make it too late in life, the local authority can deem that you have deliberately set up a Trust to avoid paying care fees and it might look suspiciously like "deliberate deprivation". 

A Living Trust can be a useful tool for protecting your assets for you and your family’s sake but it is essential to set it up when you are in reasonable health and financially solvent, so that when you make a gift to the trust, you would not have reasonably known that you might need care. If, for example, you were already ill when you signed over your property, the local authority may class this as "deliberate deprivation of assets" to avoid paying for your care fees and therefore will be included regardless in a financial assessment. 

However, one of the main reasons that a person sets up a Living  Trust is so you can protect your  assets for your children in the event that your partner should marry or co-habit after you have gone. It also protects the assets against your Children's spouse should they divorce. 

There are potential tax implications when setting up a Living Trust should it exceed a total value of £325,000. For any amount over this there will be a tax liability however it will be significantly less than Inheritance Tax which will be due on the assets at death so it is definitely worth contacting us to discuss your options. 

After your death, the Trust continues to work to protect your property for your children. The Trust can continue to hold your property safely within it or pay out of the Trust to your specified beneficiaries. The Trust is extremely flexible after your death and has the potential to continue protecting your family for 125 years from the date it was created. That means that all of the benefits listed above not only protect you and your children but can also protect your grandchildren and great-grandchildren.

To set up this Trust would cost around £1500 - £2000.

Discretionary Trusts

A Discretionary Trust can either be created by Will or as a Living Trust and is designed to give a sum, to be held on Trust, with the Trustees being responsible for how much and when to advance monies to your chosen beneficiaries. 

This is especially useful when providing money for your children (potential beneficiaries) but without them having outright control on the money consequently keeping it secure against the risk of divorce, bankruptcy or even losing entitlement to means-tested State benefits. 

It can also protect against sideways disinheritance, that is, if you die and your spouse remarries, your children's inheritance going to the new family hence the term 'sideways disinheritance'. 

The main benefit of a Discretionary Trust is its flexibility. When setting up these trusts you do not need to decide who will benefit. The trustees have discretion as to how, when, and for whose benefit to use some or all of the capital and income of the trust fund. Beneficiaries or a class of beneficiaries are named in the trust deed and it is entirely up to the trustees to decide which of the potential beneficiaries is to benefit. 

They are useful where the person setting up the trust (known as the Settlor) has identified a group of people he wishes to benefit, for example children, but is not certain which of them will need financial help in the future or what help will be required. Sometimes a Settlor has a main beneficiary in mind but feels it is inappropriate to put the money in that person's control, or that perhaps their personal situation would mean that they would be put in some difficulty if they received a large sum of money. 

There are many different scenarios that a Discretionary Trust could be a solution for so please feel free to contact us to get free advice by our specialist Trust Advisor. 

To set up this Trust would cost around £750 to include a Will. 

Protective Property Trust

A PPT  can be created when a property is jointly owned. It is an enhanced Will Trust that offers some protection for the property by ensuring that on the first death, that persons share of the property is protected from interference by third parties. That share will also be protected from assessment for care home fees should the surviving owner require care in the future.

If you're married or cohabiting with a Mortgage than this is definitely a Trust you should consider. A PPT is a two part process; a Will and a Severance of Tenancy (if needed) on the property to protect each half independently.

It is likely that you own your property as 'Joint Tenants' and when one person dies it will automatically pass to the other. A Protective Property Trust (PPT) requires the property to be held as 'Tenants in Common' instead of 'Joint Tenants' and as such each party owns a percentage share of the property (typically 50%) which will pass according to their Will no matter what.

Does it leave the survivor without a home? 

No. It puts the deceased's share of the house into a PPT allowing the survivor to stay in the property as a life tenant, they can move if they want to but essentially the deceased's share of the property will eventually go to who they want it to, normally the children. This stops sideways disinheritance. A spouse can remarry but without a PPT, everything could go to the new partner or new children if applicable.

A major benefit to a PPT is care fees. Nobody wants to see their lifetimes work being dwindled by their care fees later on in life. A PPT can ring fence 50% of your property so that it will definitely pass to your children and not be eaten up by the State.

Even if you're still a bit confused by the above, don't hesitate to get in touch and your local representative will be happy to discuss it with you further. 

Contact us online or call 0800 433 27 28